In the wake of QE2, the second round of quantitative easing by the Federal Reserve, professional investorsremain optimistic about riskier assets, specifically stocks and commodities.

Beyond increased liquidity, we think the Fed s willingness to pump $600 billion into the economy, andpossibly more should it be needed, as signaled by its intent to regularly review the pace and size of QE2,offsets investor anxiety regarding sluggish growth in the world s largest economy, and helping fuel a rally inrisk assets, says Alec Young, an equity strategist for Standard&Poor s. In addition to stocks, commodities ofall stripes soared as the dollar weakened amid fears of rampant Fed money printing, in our view.

The S&PInvestment Policy Committee advises a 65% weighting to equities in its recommended assetallocation. For specific ETFs and other asset allocation advice, please see the cover table.

Duane McAllister, vice president and investment manager at M&I Investment Management, says riskiertrading has been in vogue since the QE2 announcement, so if you were to pick asset classes that would dowell here, we think it is equities

and commodities.

It s kind of ironic since the Fed announced it will buy government bonds, quips McAllister, who is also theportfolio manager of a municipal bond fund, the Marshall Intermediate Tax Free Fund (MITFX).

I wouldn t lend the federal government money for 10 years at 2.5%, says Mark Travis, the president ofIntrepid Capital Funds. As of November 8, the fund he co-manages, the Intrepid Capital Fund (ICMBX)maintained about 18% in cash and Treasuries, 25% in corporate debt, and the rest, 57%, inequities.

Even Gibson Smith, co-chief investment officer (CIO) of fixed-income investments at Janus CapitalManagement, proclaims he is bullish on equities.

When I talk about equities it s kind of perverse coming from a fixed-income guy, but overall when you look atwhat we ve been through post-crisis the amount of liquidity in the system, there are reasons to be bullishhere, Smith says.

Although not all of the buy-side executives were in agreement over whether another round of quantitativeeasing will benecessary, they all agree that the Fed s QE2 plan to buy an additional $600 billion of longer-term Treasury securities from the market by the end of June 2011, if implemented, would be positive for thevast majority of large quality multinationals over the

next year or two. The announcement alone reflectedpositively on stocks. The markets applauded the November 3 Fed news by bidding up the S&P 500 nearly 2%that day alone.

Managers at firms that manage a blend of funds point out that QE2 s effect on the stock market in the nearterm should be the result of keeping money flowing in the system, holding down interest rates to ease debtburdens and spur lending, and preventing prices on finished goods and services from depreciating further.

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2010

2

I don t know how much of QE2 is going to have an impact, but I consider it more of an insurance policy, saysThomas E. Villalta, CFA, president and chief investment officer at Jones Villalta Asset Management.Additional liquidity has the ability of being inflationary, but I think QE2 is more of an insurance policy againstdeflation and that has played well for the market over the last few days since QE2 was announced. he adds.

I think the purpose of QE2 is to prevent Japan 2, agrees Brian Barish, CFA, president and chief investmentofficer at Cambiar Investors. The Fed wants to avoid a structural weak period of growth in the U.S. thatbegets stagnation and a liquidity crisis, just like what Japan experienced, he adds.

The longer-term view they espouse is that QE2 is very likely

to help boost equity prices over the next fewquarters. Gibson at Janus sees good valuations in the equity markets, and he expects those investors withcash sitting in money market funds or fixed-income investors who learned bitter lessons in 2008 and 2009 toreturn to stocks for better returns over time.

The London Company s Managing Director Stephen Goddard, CFA, points out that many Americancompanies are offering cash-flow yields that are as high as or higher than bonds, an unusual scenario thatspeaks

to the attractive relative value of stocks, and suggests that long term investors in stocks should enjoysuperior returns, especially relative to bonds, he wrote in a recent note to investors.

Fund strategists and asset managers agree that investors who want to put new money to work in stocks justneed to be selective. Professional investors believe that certain stocks could reflect the effects of tightermargins and lower profitability into 2012 due to commodity-price increases. Many buy-side participants

areconcerned that some companies, especially those that depend on slower-growth developed economies forsales, may see their sales drop at the same time that their raw-material costs rise.

able to maintain its quarterly dividend of $0.35 per share. We are maintaining our 2010 EPSestimate of $2.57. We forecast that operating revenues will rise 5% to 6% in 2011 versus 2010, reflectingimproving rates. Our 2011 EPS estimate is $2.63. We are also keeping our 12-month target price of $21,based on an 8.1X multiple our '11 EPS estimate, below its peer average.

S&P MAINTAINS HOLD OPINION ON SHARES OF FRONTLINE LTD(FRO28.88 *** ) : Ahead of Q3 resultsscheduled for release on November 24, we are maintaining our Q3 EPS estimate of $0.53 versus a year-agoper share loss of $0.07. We believe the company will maintain its quarterly dividend of $0.75 per share. Weare keeping our 2010 EPS estimate of $3.25. We forecast that ship operating expenses will increase 7% to9% in 2011 versus 2010. We keep our 2011 EPS forecast of $2.36. We are maintaining our 12-month targetprice at

$30, based on our blend on our NAV valuation and 12.5X times our '11 operating EPS forecast, inline with peers.

S&P REITERATES BUY OPINION ON SHARES OF H.J. HEINZ(HNZ47.79 **** ) : Oct-Q EPS fromcontinuing operations of $0.78, vs. $0.76, is $0.02 below our estimate. We see currency fluctuation adverselyaffecting EPS in the quarter by $0.03. Also, we view volume growth of 0.3% as lackluster. However, we arepleased by extent to which gross profit margin widened. We are lowering our FY 11 (Apr.) EPS estimate to$3.01 from $3.04, but keep FY 12's EPS projection of $3.27. We continue to expect emerging internationalmarkets to be

an increasing part of future sales mix. We are keeping our 12-month target price of $51.Indicated dividend yield is about 3.8%.

Medco outlines a bright prognosis, with a goal of 16%-20% annual EPS growth through 2020. Key driversshould be robust growth in higher margin mail order and generics, as well as significant expansion in newspecialty drugs for cancer and immune disorders. Medco's mail order dispensing rate is expected to reach80%-85% by 2020, up from 58% in 2009. Generics growth should be spurred by $90B in patent expirationsover 2011-2020, including some $28B in 2012. We reiterate our 12-month target price of $70, which applies apeer EBITDA/share P/E of 10X to our '11 EBITDA estimate.

Althoughfew consumers are spending like its 2006 or 2007, we believe shoppers will keep there wallets openthis holiday season. For the 2010 holiday selling season, which spans November 2010 through January 2011,Standard&Poor's projects that retail sales will increase 2.5% to 3%, following the current trend in sales ofgeneral merchandise, apparel, furnishings, and "other" goods (GAFO). While we expect yet another highlycompetitive shopping season, we see department stores and outlets capturing share by offeringconsumersmore choice, running longer promotions, and hiring more seasonal workers to ensure that both in-store andonline shoppers are well served. Kohl's (KSS 50 ****), for example, will hire over 40,000 associates thisholiday season, for a more than 20% year-over-year increase.

We also expect pop-up stores to play an increasingly important role this holiday season (albeit still limited inthe grand scheme). While pop-ups have been around for many years, this year, the group has gainedincreased attention due to their growth. Toys R' Us, which last year opened 90 seasonal or pop-up stores,announced that it would open 600 this year and hire 10,000 seasonal employees to staff these stores. For aretailer, such as Toys R' Us, which generates about 40% of sales in the fourth quarter (and we estimate ahigher figure if you strip out Babies R' Us), these stores are a good way of matching retail supply withconsumer demand. Retailers such as Calendar Club, Go! Games, Go! Toys, and Spirit Halloween stores, aswell as countless "mom and pop" Halloween stores, are others that take advantage of seasonal shoppingpatterns.

We believe that such leasing benefits retail landlords in numerous ways. First, it allows the landlord to collectrents on space that might otherwise sit vacant or be leased at an undesirable long-term rent. Second,temporary leasing affords the landlord an opportunity to drive traffic to the center, which benefits the overallproperty. Third, such leasing affords both the tenant and the owner an opportunity to see if a given locationmakes sense on a long-term basis. CBL&Associates (CBL 16 *****) and Simon Property Group (SPG 97*****), among others, have indicated they have had success in converting a number of pop-up/temporaryleases to permanent

ones. It also gives the landlords a chance to generate income and fill spaces as theybecome available, often before permanent tenants would normally start construction in the first or secondquarter.

Although we expect temporary leasing to remain a relatively small contributor to the bottom line for retailREITs, we believe that it represents another means for retail landlords to cushion the blow of elevatedvacancy levels. Developers Diversified (DDR 12 ***), a major owner of shopping centers, noted that it wouldgenerate about $3 million in revenue from leasing temporary space to stores in the Halloween and toycategories, but not much for a company with 2009 revenue of $819 million-

but still meaningful at a timewhen retail landlords are trying to re-build occupancy levels. At DDR, for example, even though the coreportfolio leased rate improved to 92% at the end of 2010's third quarter from 90.9% last year, it was still a farcry from 2007's third quarter rate of 95.9%. We also note that landlords provide little if any tenantimprovement concessions for a temporary space, which helps minimize costs associated with the space andrental income stream.

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November-19-

2010

4

REITs generally do not include temporary leasing or pop-ups in their reported leasing statistics. However,Taubman Centers (TCO 44 ***) noted that its temporary leasing program was strong in the 2010 third quarter.It also added that temporary occupancy accounted for 4.1% of tenant area in its regional malls, and if thisnumber were added to its permanentoccupancy statistic, it would be nearly 93% occupied at the quarter'send. TCO's management noted that temporary leasing would likely approach 5% by year-end, a record for thecompany. They also pointed out that the timing has been opportune, as it allowed

the company to fill spacesas they become available.

ROBERT MCMILLAN, S&P Equity Analyst

S&P Focus Stock of the Week

Update on 15-11-

2010

STARS Changes

Date

Symbol

Company Name

New

Ranking

Old

Ranking

Reason

11/18/10

BKE

Buckle

Inc

Valuation

11/18/10

CVC

Cablevision

Sys

Rainbow programming networks spin-off

11/18/10

CAH

Cardinal

Health

Valuation

11/18/10

FFG

FBL

Financial

G

Valuation

11/18/10

NTAP

NetApp

Inc

Stronger deamnd, gain in market share

11/18/10

PLCM

Polycom

Inc

Valuation

11/18/10

SJM

Smucker

(J.M.)

Possible margin pressure in coffee biz

11/18/10

YHOO

Yahoo

Inc

Valuation

11/17/10

ATI

Allegheny

Techn

Valuation

11/17/10

CATY

Cathay

General

Valuation

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

5

11/17/10

CYT

Cytec

Indus

Valuation

11/17/10

F

Ford

Motor

Valuation

11/17/10

NFLX

NetFlix

Inc

Added to Stars

11/17/10

PTV

Pactiv

Corp

Acquired by Reynolds Grp Hldngs

11/16/10

BBL

BHP

Billiton

pl

Valuation

11/16/10

EIX

Edison

Intl

Valuation

11/16/10

MPWR

Monolithic

Powe

Valuation

11/16/10

PBR

Petroleo

Brasil

Valuation

11/16/10

PSYS

Psychiatric

Sol

Acqrd by Universal Health Servcs (UHS)

11/16/10

RDN

Radian

Group

Completes public offering

11/16/10

TCH

Technicolor

ADS

No longer followed analytically

11/16/10

TJX

TJX

Companies

Valuation

11/15/10

BUCY

Bucyrus

Interna

Valuation

11/15/10

ISLN

Isilon

Systems

Valuation

11/12/10

MSCC

Microsemi

Corp

Valuation

11/12/10

NVDA

NVIDIA

Corp

Valuation

11/11/10

CSCO

Cisco

Systems

More challenging climate

Economic Calendar

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Phone: +92-21-5240131-40

November-19-

2010

6

Friday November 19, 2010 (07:16 AM ET)

Calendar of Upcoming Economic Events

AE

Street

Date

Time

Release

For

Forecast

Median

Last

11/18/10

08:30US

Initial Claims 11/13

439K A

442K

437K R

11/18/10

08:30US

Cont Jobless Clms 11/06

4,295K A

4,343KR

11/18/10

10:00US

Philadelphia Fed Index

NOV

22.5 A

5.0

1.0

11/18/10

10:00US

Leading Indicators

OCT

0.5% A

0.5%

0.5% R

11/18/10

10:30US

EIA Natur Gas Stks11/12

3B A

19B

11/18/10

16:30US

M2-

Week Ended 11/08

$16.0B A

$22.4B

Economic Brief

Thursday November 18, 2010 (12:00 PM EST)

S&P WEEKLY ECONOMICS CALL

North America: Both the Group of 20 (G-20) meeting this week and the report of the bipartisan deficitcommission showed the political difficulties of the steps needed to correct the gross imbalances in the globaleconomy. At the G-20 meeting in Seoul, surplus countries objected to the U.S.'s quantitative easing (QEII)policy because it threatens their continued surplus. The right condemned the deficit commission's proposalsbecause they would raise taxes, and the left condemned them for cutting Social Security. But neither extremeoffered any alternative.

-The St Louis Federal Reserve's Bullard said the $600 billion QEII program will be adjusted as the data comein, and there's a possibility that all $600 billion in Treasuries are not purchased (that was already indicated bythe Federal Open Market Committee's statement). New York Fed President Dudley said critics of the QEII "donot understand clearly" the plan and underestimate the Fed's ability to raise rates when the time comes.

-Consumer prices rose 0.2% in October, but were flat excluding food and energy. The data were close to theconsensus estimates of up 0.3% and up 0.1%, respectively. Over the past 12 months, the consumer priceindex (CPI) is up 1.2%. Meanwhile, the CPI, excludingfood and energy, is up 0.6%, the smallest priceincrease since 1957, when the government started recording data. The continued low inflation will helpconvince the Fed to keep its QEII in place.

-Industrial production was flat in October, as a 3.4% dropin utility production offset a 0.5% rise in

S.S. Corporation (Pvt) Ltd.

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November-19-

2010

7

manufacturing output. The market had expected a 0.4% rise in production. Manufacturing's 0.5% rise was ledby a 2.2% rise in electronics and a 1.6% rise in motor vehicles. Industrial production held at 74.8%, but

manufacturing utilization rose to 72.7% from 72.3% in September. The West and the South saw sharp month-over-month declines; the Northeast and Midwest were up. Building permits rose 0.5% to 550,000 from a547,000 pace in September (was 539,000).

-U.S. housing starts dropped 11.7% to a 519,000 pace (annualized) in October, well below the 594,000 rateexpected by the consensus and after September was downwardly revised to 588,000 (previously 610,000).Housing starts were down 1.9% from last October. Multi-family starts plunged 43.5% to 83,000 in October,while single family starts edged

down 1.1% to a 436,000 pace.

-Consumer sentiment (as measured by a University of Michigan survey) rose to 69.3 in early November from67.7 in October.

-U.S. bankruptcy filings were up 11% in the first nine months of 2010 from the same period in 2009. Businessbankruptcies dropped 6%, but consumer bankruptcies rose 12%.

Word On The Street

Friday November 19, 2010 (04:00 PM EST)

DECKERS OUTDOOR CORP., RPC INC., ANNTAYLOR STORES CORP.

JEFFERIES INITIATES COVERAGE OF DECKERS OUTDOOR (DECK) WITH BUY, $75 TARGET(DECK) :Analyst Taposh Bari tells salesforce continues to see DECK's UGG brand as a double-digit growth story withpotential for 20% annual revenue growth over next 3-5 years. Says '11 is set to be an inflection in UGGbrand's international trajectory as it assumes direct control in U.K. and Benelux, its

market for U.S. pressure pumping remains very tight, stocks are near all-timehighs and Street estimates imply that the cycle goes through 2012. However, would not be aggressive onRES as pressure pumping is highly cyclical and barriers to entry are low.Expects capacity additions and aflattish rig count to cause margins to peak in Q2 2011 and his cyclical framework suggests that now is thetime to sell these stocks and rotate into international peers, which are at the trough of their cycle. M.Morrow

MELA SCIENCES, INC.(MELA) : MELA announces that the General and Plastic Surgery Devices Panelappointed by the FDA voted by majority that, for its proposed indications, MelaFind is safe and effective andthat its benefits outweigh the risks. MelaFind is a non-invasive and objective multi-spectral computer visionsystem designed to aid physicians in detection of early melanoma. Leerink Swann raises target, reiteratesoutperform.See

DEL MONTE FOODS CO.(DLM) : Financial Times reports: KKR&CO. is in advanced talks about a deal totake private DLM, the US food and pet products company. People familiar with the matter said KKR had beendiscussing a buy-out with DLM for several months and that a deal could be agreed within weeks. The twosides are discussing a price of about $18.50 a share, those people added, which would value the company atclose to $3.6B. DLM also has about $1.3B of net debt.

CVR ENERGY, INC.(CVI) : CVI announces the pricing of a registered underwritten secondary public offeringof 18M common shares by certain of its stockholders at a public offering price of $10.75 per share. No shareswere sold by co. and it will not receive any proceeds from the offering. Says certain selling stockholders havegranted the underwriters a 30-day option to purchase up to an aggregate of 2.7M additional common shares.

SOMAXON PHARMACEUTICALS, INC.(SOMX) : SOMX announces that it intends to offer shares of itscommon stock in an underwritten public offering.

KIRKLAND'S,

INC.(KIRK) : KIRK posts $0.11 vs. $0.27 Q3 EPS on 2.4% lower same-store sales (SSS), 0.4%lower total sales. Street was looking for $0.12. Expects total sales for FY 11 to increase in the range of 2%-4%, which would imply a mid-to-high single-digit decrease in SSS for Q4. Sees Q4 EPS of $0.66-$0.70 whichwould equate to FY 11 EPS of $1.25-$1.29. Street is looking for $1.42.

SHENGKAI INNOVATIONS, INC.(VALV) : VALV says it is commencing a public offering of common shares.Global Hunter Securities LLC and Maxim Group LLC are acting as the joint book runners for the offering. Aregistration statement relating to the ordinary shares was declared effective by the Securities and ExchangeCommission (SEC) on Oct. 25, 2010. A prospectus supplement relating to the offering will befiled with theSEC.

Fund Strategies

Update on 11-11-

2010

Neural Fair Value 25 Additions

Update on 7-9-2010

Neural Fair Value 25 Deletions

Update on 7-9-2010

S.S. Corporation (Pvt) Ltd.

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Phone: +92-21-5240131-40

November-19-

2010

10

High Yield Stocks

High Yielding 3/4/5 Star Stocks

(as of 11/15/2010 close)

Company Name

Symbol

Yield%

HOSPITALITY

PROPERTIES

TRUST

HPT

8.0

CENTURYLINK,

INC.

CTL

6.8

BANCORPSOUTH,

INC.

BXS

6.4

PITNEY

BOWES

INC.

PBI

6.2

ALTRIA

GROUP,

INC.

MO

6.1

FIRSTENERGY

CORP.

FE

6.1

REYNOLDS

AMERICAN

INC.

RAI

6.0

HEALTH

CARE

REIT,

INC.

HCN

5.9

AT&T

INC.

T

5.8

NATIONAL

RETAIL

PROPERTIES,

INC.

NNN

5.7

HCP,

INC.

HCP

5.6

CINCINNATI

FINANCIAL

CORP.

CINF

5.3

ENTERPRISE

PRODUCTS

PARTNERS

L.P.

EPD

5.3

PPL

CORP.

PPL

5.3

EXELON

CORP.

EXC

5.2

HUDSON

CITY

BANCORP,

INC.

HCBK

5.1

NATIONWIDE

HEALTH

PROPERTIES,

INC.

NHP

4.9

WINTHROP

REALTY

TRUST

FUR

4.9

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

11

BRISTOL-MYERS

SQUIBB

CO.

BMY

4.8

CONSOLIDATED

EDISON,

INC.

ED

4.8

DTE

ENERGY

CO.

DTE

4.8

SOUTHERN

CO.

(THE)

SO

4.7

DPL

INC.

DPL

4.6

SOVRAN

SELF

STORAGE,

INC.

SSS

4.6

ENTERGY

CORP.

ETR

4.5

MERCK

&

CO.,

INC.

MRK

4.4

PAYCHEX,

INC.

PAYX

4.4

REGENCY

CENTERS

CORP.

REG

4.4

KIMCO

REALTY

CORP.

KIM

4.3

LOCKHEED

MARTIN

CORP.

LMT

4.3

S&P Platinum Portfolio

Return Year To Date through10/31/2010

Patinum Portfolio

S&P 500

+8.0

+6.11

See Below For Historical Performance

Company Name

Ticker

11/19/2010

FairVal

Price

FVal

Star Ranking

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

12

Aeropostale

Inc

ARO

32.70

23.90

5

Arrow

Electronics

ARW

41.20

30.00

5

Aspen

Insurance

Hldg

AHL

44.60

29.10

5

Avnet,

Inc.

AVT

39.30

30.90

5

Brocade

Communic

Sys

BRCD

7.20

5.70

5

CVS

Corp.

CVS

40.00

30.20

5

Chevron

Corp.

CVX

90.60

85.40

4

Chico's

FAS

CHS

10.60

10.20

4

Cisco

Systems

CSCO

24.20

20.10

5

Coach

Inc

COH

54.10

51.60

4

Computer

Sciences

CSC

56.90

46.90

5

EMC

Corp.

EMC

22.50

21.70

4

Express

Scripts

ESRX

59.20

52.20

5

ExxonMobil

XOM

70.70

71.00

4

Fiserv

FISV

63.90

55.10

5

GameStop

Corp'A'

GME

32.00

20.80

5

General

Mills

GIS

32.40

36.30

2

Gilead

Sciences

GILD

47.90

37.80

5

ITT

Industries

ITT

52.60

46.90

5

International

Business

IBM

167.50

143.70

5

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

13

JPMorgan

Chase

&

Co

JPM

40.80

39.60

4

Jacobs

Engineering

Grou

JEC

44.30

41.70

4

Johnson

Controls

JCI

31.60

36.50

2

MEMC

Electronic

Materia

WFR

17.80

13.00

5

Medtronic,

Inc.

MDT

51.00

34.60

5

MetroPCS

Communic

PCS

14.60

12.10

5

NICE-systems*

ADS*

NICE

32.80

31.90

4

New

York

Community

Banc

NYB

16.50

16.80

3

Noble

Corp.

NE

44.00

36.90

5

Oracle

Corp.

ORCL

35.60

28.30

5

Rio

Tinto

plc

ADS*

RIO

73.60

69.50

4

Sanmina-SCI

Corp.

SANM

13.00

11.50

5

State

Street

Corp.

STT

48.40

43.90

5

Transocean

RIG

76.60

67.70

5

Travelers

Cos

TRV

56.80

56.30

4

Under

Armour'A'

UA

42.60

50.50

2

Wal-Mart

Stores

WMT

57.80

54.10

4

Western

Digital

WDC

37.80

32.60

5

Willis

Group

Holdings

WSH

36.40

33.00

5

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

14

Worthington

Industries

WOR

17.70

16.10

5

Platinum Portfolio Performance

Year

Platinum(%)

S&P 500(%)

2009

34.23

23.45

2008

-44.47

-38.49

2007

4.85

3.53

2006

12.97

13.62

2005

10.63

3.0

2004

10.74

8.99

2003

45.45

26.38

2002

-35.52

-23.37

2001

-0.27

-13.05

2000

18.61

-10.14

1999

75.98

19.53

1998

20.54

26.67

1997

17.42

31.01

1996

34.32

20.26

Analyst Blog

Novatel

Launches

HSPA+

USB

Modems

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

15

Posted Fri Nov 19, 06:21 pm ET

Novatel Wireless Inc.

(NVTL) yesterday announced the launch of its compact and light-weight DC-HSPA+USB modem on Bell Mobility's Dual-Cell HSPA+ (DC HSPA+) network. The Ovation MC547 USB modem isbased on the 3GPP Release 8 standard and will provide the next-generation, high-speed mobile environment.

By providing theoretical peak downlink data rates of up to 42 Mbps and 11 Mbps on the uplink, DC-HSPA+will enable carriers to upgrade their existing infrastructure equipment and achieve significantly higherbandwidths.

Despite providing disappointing results, Novatel provided an extremely strong financial outlook for the ensuingfourth quarter. For fourth quarter 2010, management expects revenues to be in the range of $110 million-

$115 million. Gross margin will be around 19%-20%. Non-GAAP EPS is expected in the range of 2 cents to 5cents.

Recently, wireless giant,AT&T Inc.

(T) joined hands with Novatel to provide Novatel’s MiFi mobile hotspotthat supports up to five devices at once connecting via WiFi.Verizon Wireless

(VZ) andSprint

Nextel Corp.

(S) have already been offering MiFi gadgets of Novatel.

Verizon Wireless also started sellingApple Inc’s (AAPL) 3G iPad bundled with Novatel’s MiFi wirelesshotspots from October 28, 2010. We believe that this will considerablybenefit Novatel in the long run.

(SWIR), which lost themobile hotspot battle, but beat Novatel to the 4G acess cards when Sprint came out with Sierra's Overdrivehotspot earlier this year.

HTC's EVO 4G handset, which is based onGoogle Inc.'s (GOOG) Android operating system with in built MiFimobile hotspot functionality, became the first 4G smartphone through Sprint.

Walter

to

Buy

Canadian

Company

Posted Fri Nov 19, 06:15 pm ET

U.S. coal minerWalter Energy Inc.

(WLT) has proposed to acquire Canada’s Western Coal Corp. forCAD$11.50 per share in a cash and stock deal, with an eye to create a

coal behemoth tapping the risingdemand from Asian Steel-makers.

Walter Energy has entered into a purchase agreement to buy roughly 54.5 million (19.8%) of the outstandingWestern Coal shares owned by affiliate Audley Capital. Walter Energy will pay CAD$11.50 per share or atotal consideration of CAD$630 million (USD$615 million) for acquiring Audley’s stake in Western Coal.

Under the agreement, Walter Energy will acquire shares from Audley in two parts–

first, roughly 25.3 millionshares for cash; and then, will acquire the remainder of the stake in cash or stock immediately upon theacquisition of Western Coal by Walter Energy, no later than April 30, 2011.

The total enterprise value of the proposal for Western Coal, including the purchase from Audley Capital, isCAD$3.3 billion (USD$3.2 billion).

With regard to the proposal, the companies have agreed to work exclusively to reach a definitive agreementby December 1, 2010. According to the deal, neither side incurs any penalty in the event of deal failure. Adeal is also subject to approval by Western's holders and clearance by regulators.

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

16

On successful completion of the deal, Walter expects to have geographically diverse assets in Canada, theU.S. and the U.K. The company expects to become a 'pure-play' metallurgical coal producer with strongmarket positions in Asia, South and North America and Europe.

The combined company, on a pro forma basis, would have total coal reserves of about 385 million tons. On astand-alone basis, Walter Energy and Western Coal anticipate a rise in production to 9.5 million tons in 2012and 11.0 million tons in March 2013, respectively. We expect the merged company to gain from the synergiesof elevated production and reserves along with the anticipated strength in the global metallurgical coalmarkets.

Tampa, Florida-based Walter Energy is one of the leading U.S. producers and exporters of premiummetallurgical coal to the global steel industry in the United States. Walter Energy currently producesapproximately 7.0 million tons of premium metallurgical coal.

Walter’s operating earnings for the third quarter of 2010 came in at $2.57 per share, slightly below the ZacksConsensus Estimate of $2.59 but well above the year-ago earnings of 45 cents per share. We expect theoperatingearnings for fiscal 2010 and 2011 to be $7.74 and $10.41, respectively.

Walter Energy currently has a short term Zacks #3 Rank (Hold). Its closest peersArch Coal Inc.

(ACI) andMassey Energy Co.

(MEE) also carry a Zacks #3 Rank.

St.

Jude

Wraps

Up

AGA

Acquisition

Posted Fri Nov 19, 06:05 pm ET

St. Jude Medical

(STJ) has officially completed its acquisition of cardiac devices maker AGA MedicalHoldings. This follows the recent federal antitrust clearance of the deal. Pursuant to the agreement, AGAMedical has been merged with St. Jude’s wholly-owned subsidiary Asteroid Subsidiary Corporation.

St. Jude announced its acquisition of Plymouth, Minnesota-based AGA Medical for $1.3 billion in October2010. The deal value includes the assumption of $225 million of AGA Medical debt. Under the deal,shareholders of AGA Medical were offered $20.80 (in the form of cash and/or stock) for each share they hold.

Following the acquisition, 50% AGA Medical shares surrendered in the merger were converted into the rightto receive $20.80 in cash while the remaining 50% receiving 0.54 of a share of St. Jude’s common stock foreach share of AGA Medical common stock.

AGA Medical specializes in making devices for treating structural heart defects and vascular abnormalitieswith minimally invasive transcatheter treatments with revenues of $199 million in 2009. Many of thecompany’s products are used to treat heart defects in children. Its coveted AMPLATZER occlusion (closure)devices are currently sold in 112 countries.

AGA Medical has the leading share of the market for structural heart defect occluders. The company has arobust pipeline with a number of products currently under clinical trials. Should they be successful, St. Judecan look forward to blockbuster opportunities.

Consolidation binge among the top-tier U.S. medical devices companies continues as they battle to grabshare in the mature pacemaker and implantable cardioverter defibrillator (ICD) markets. St. Jude, like itspeersMedtronic

(MDT) andBoston

Scientific

(BSX), is exploring new avenues of growth by targetingsmaller companies with promising growth prospects.

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

17

The acquisition provides St. Jude with the opportunity to expand into fast-growing new therapy areas beyondits legacy ICD and pacemaker markets. The addition of AGA Medical is expected to considerably strengthenSt. Jude’s atrial fibrillation and cardiovascular franchises.

The integration of the complementary product lines will make the combined entity a leading player in thestructural heart market. AGA Medical has historically grown at a healthy pace with revenues increasing at acompound annual rate of 19% over the last five years.

St. Jude expects the acquisition to help its sales grow at a low double-digit rate in 2011. Moreover, the deal isexpected to be accretive to earnings starting 2011. St. Jude expects AGA Medical to contribute $20 million to$25 million in revenue in fourth-quarter 2010. We are currently Neutral onSt. Jude, which is supported by ashort-term Zacks #3 Rank (Hold).

Bull

of

the

Day

Scripps Networks Interactive (SNI)

By: Zacks Equity Research

November 19, 2010|Comments: 0

Recommended this article (0)

SNI

We upgrade our recommendation forScripps Networks Interactive

(SNI

-

Analyst

Report) to Outperformfollowing its impressive third quarter of fiscal 2010 financial results, well above the Zacks ConsensusEstimates. This was primarily attributable to significant growth in advertising and affiliate-fee revenue at thecompany's flagship Lifestyle Media business and higher total segment profit.

Importantly, the struggling onlineshopping business sites of the company also generated year-over-yeargrowth. According to our view, both advertising revenue and affiliate fee revenue will remain healthy in thenear-future due to an improving U.S. economy. Scripps Networks has successfully hiked fees it charges cableoperators.

Acquisition of a majority stake in the Travel Channel and re-branding of FLN channel as Cooking Channel willhelp the company to maintain its future growth. Moreover, Scripps Networks is gradually diversifying in theemerging Asian markets.

We thus remain apprehensive regarding the stock in the near term, given eroding margins and lagging same-store sales due to decline in traffic. Additionally, the company suspendedits outlook for fiscal 2010 andprovided a little insight for 2011, thus projecting low visibility on the stock.

Moreover, the stiff competition to lure budget constrained consumers, and the presence of nearly 50% of therestaurants in areas hit hard by the recent housing downturn, are causes of concern. They may dampen thecompany's growth potential. As a result, we are downgrading the stock from Neutral to Underperform

Aggressive

Growth

Park-Ohio Holdings

By: Bill Wilton

November 19, 2010 |Comments: 0

Recommended this article (0)

PKOH

Park-Ohio Holdings

(PKOH) reported earnings about 3 times higher than expected, which instantly pushed expectationshigher.

Even though shares have moved higher, the valuations are great and this Zacks #1 Rank (Strong Buy) is poised foranother run.

On Nov 8 Park-Ohio reported quarterly sales of $203 million, up 20% since the same period in 2009. Net income came inat $6.2 million, which is a strong turnaround from the $3.2 million loss a year go.

The covering analyst was not just surprised, they were shocked. The company earned 60 cents per share, more than 3times the 19 cents the estimate was calling for. This was Park-Ohio's fourth consecutive earnings surprise.

Bullish Comments

Park-Ohio's Chairman and CEO commented that the company has been very busy in the past quarter booking neworders, which is now up about 50% year-to-date.

Also, the acquisition of Assembly Component System, which took place during the quarter, will add over $50 million inrevenue next year.

Estimates Soar

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

19

Currently, expectations for this year's earnings are $1.10, up 19 cents since the quarterly news. Next year's forecast iscalling for $1.54, up 29 cents.

The growth rate for this year is off the chart, coming up from a 7-cent loss in 2009. The projection for 2011 is for 40%growth.

Valuations

Right now shares of PKOH are going for about 12 times next year's earnings estimates. The price to sales is coming in at0.27 times, showing solid value.

The Chart

Shares of PKOH were up nicely on the earnings surprise, but hit a wall when the stochastic hit "overbought" territory.However, the stock has taken a breather and could be poised for another move higher.

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beatingZacks

Small

Cap

Trader

service

Momentum

Ctrip.com International, Ltd.

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

20

By: Michael Vodicka

November 19, 2010 |Comments: 0

Recommended this article (1)

CTRP

Ctrip.com International, Ltd.

(CTRP

-

Snapshot

Report) recently hit a new multi-year high above $53 afterthe company reported an awesome Q3 earnings surprise of 29% in early November. With a bullish next-yearestimate and high industry rank, this Zacks #1 rank stock provides international flavor to the momentumfaction.

Company Description

Ctrip.com Int. Ltd., together with its subsidiaries, provides a range of travel services from hotels to airlinetickets in China. The company was founded in 1999 and has a market cap of $6.66 billion.

China has been a leader in the global economic rebound of the last 18 months, showing huge gains in GDPthat continue to enrich its middle class. That dynamic was on display on Nov 4 when the company reportedstrong Q3 results that came in ahead of expectations.

Third-Quarter Results

Revenue for the period was up 48% from last year to $129 million. Earnings also came in strong at 31 cents,29% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 15%over the last four quarters.

The strong results were driven by hotel rentals, where sales were up 36% from last year

to $52 million on a30% increase in volume. Air tickets were also strong, also up 36% from last year to $47 million.

Not only did Ctrip see big sales gains, its gross margin reveals a highly profitable business, coming in 78%,up 100Bps from last year.

Tons of Cash, No Debt

Ctrip emerged from the quarter with its pristine balance sheet in great shape, with its cash and equivalents up$93 million from last year to $275 million.

Estimates

We saw some pretty solid movement in estimates on the good quarter, with the current year up 7 cents to$1.01 and the next-year estimate up 6 cents to $1.29, a bullish 28% growth projection.

Valuation

In light of recent gains, CTRP's forward P/E of 50X is a sharp premium to the industry average of 16X.

2-Year Chart

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

21

On the chart, CTRP recently hit a new multi-year high above $53 before pulling back a bit on general marketvolatility. But in spite of the gains, the stochastic below the chart is signaling that shares are trading near over-sold territory. Look for support from the long-term trend line on any weakness.

Growth

&

Income

The Kroger Co

By: Todd Bunton

November 19, 2010 |Comments:

0

Recommended this article (1)

KR

If there is one industry that can survive a recession, it's grocery stores. People may cut back a bit or tradedown to generic brands, but they still have to eat.The Kroger Co

(KR

-

Analyst

Report) is one of the largestsupermarket chains in the U.S., and the company weathered the last recession quite well.

Kroger recently reported solid results for the second quarter of 2010, marked by strong same-store sales.Management expects this trend to continue for the rest of 2010,

too, which has prompted analysts to raisetheir estimates higher.

Second Quarter Results

Kroger recently reported its results for the second quarter of 2010. Earnings per share came in at $0.41, a 5%increase over the same quarter in 2009, and 14% ahead

of the Zacks Consensus Estimate. It was Kroger'sthird consecutive earnings surprise.

Total sales increased 6.0% over the same quarter in 2009. Excluding volatile fuel revenue, same-store saleswere up 2.7%.

Meanwhile, operating profit declined 1.0% over the same period in 2009.

Outlook

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

22

Management gave guidance following its third quarter earnings release. For 2010, the company expects toearn between $1.60 and $1.80 per share on same-store sales growth of 2.0%-3.0%.

The Zacks Consensus Estimate for 2010 is within guidance at $1.77, corresponding to a 3% increase over2009 EPS. The 2011 estimate is currently $1.97, equating to 11% EPS growth. It is a Zacks #2 Rank (Buy)stock.

Dividend

Kroger has increased its dividend at a compound annual growth rate of 13% since 2006. It yields 1.8%.

The company has a payout ratio of 23%, which is in-line with most of its peers. For instance,Supervalu

(SVU

-

Analyst

Report) pays out roughly 19% of its earnings in dividends, whileSafeway

(SWY

-

Analyst

Report)pays out 32%. Southeast supermarket operatorRuddick Corp

(RDK

-

Snapshot

Report) has a payout ratioof 21%.

Fundamentals

Kroger is relatively cheap, trading at just 12.9x forward earnings, compared to the industry average of 16.6x.

Its price to sales ratio is just 0.2, well below its peers at 0.5.

The stock has been essentially flat over the last 12 months.

Kroger was founded in 1883 and is headquartered in Cincinnati, Ohio. It has a market cap of $14.5 billion.

Todd Bunton isthe Growth & Income Stock Strategist for Zacks.com.

Value

Dorman Products Inc.

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

23

By: Tracey Ryniec

November 19, 2010 |Comments: 0

Recommended this article (1)

DORM

The automotive industry has come roaring back to life.Dorman Products, Inc.

Dorman has been around almost since the birth of the automobile, when in 1918, the founders realized thatthere was a real business for hard to find auto replacement parts.

The company used to actually find the parts in the junk

yard but now distributes thousands of products undernumerous brand names such as Dorman, AutoGrade, First Stop, Conduct-Tite and Scan-Tech.

7th Earnings Surprise in a Row

On Oct 26, Dorman Products reported its third quarter results which blew by the Zacks Consensus Estimateby 27%. Earnings per share were 71 cents compared to the consensus of 56 cents. This is 61% better than ayear ago, which was 44 cents.

It continued an incredible streak of 7 earnings surprises in a row which began in early 2009 as the economywas slowing coming out of the recession.

Revenue soared to $119.2 million from $98 million in the third quarter last year on strong customer demandand higher new product sales. For the first 9 months, revenue climbed 18.7%.

Outlook Looks Goodfor 2011

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

24

The company is optimistic about 2011 as it plans on having the largest number of new product releases in itshistory for both its new and existing product lines.

It has also begun an expansion of its Warsaw, Kentucky distribution facility to support its future growth.

The addition will be about 175,000 square feet of warehouse space at the cost of $9 million. It should becompleted by the spring of 2011.

Zacks Consensus Estimates Head Up

Even though the company did not provide earnings per share guidance, given the big beats the last fewquarters, it's not surprising that the analysts are raising estimates.

The 2010 Zacks Consensus is up 14 cents to $2.36 in the last month. Analysts expect earnings growth of60.2% compared to 2009.

The 2011 Zacks Consensus has also been on the move higher. It has jumped to $2.61 from $2.33 in the last30 days. This is still double digit earnings growth of 10.6%.

Valuations Still Look Good

In addition to an attractive P/E ratio, the company also has a price-to-book ratio of 2.4, which is within theparameters of a value stock.

The company also has an outstanding 1-year return on equity (ROE) of 18%, well above its peers at 11.7%.

Dorman Products is a Zacks #1 Rank (strong buy) stock.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beatingZacks

Value

Trader

service. You can follow her attwitter.com/traceyryniec

Investment

Ideas

4 Stocks with Leverage

By: Todd Bunton

November 18, 2010 |Comments: 0

Recommended this article (2)

ETN

|HMC

|CSX

|CAT

Think about the last time you stayed in a hotel. How much did you pay? How much did it actually cost thehotel to have you stay there that night?

Sure, it cost a lot of money to build and furnish the room, but the company has already incurred thoseexpenses. The actual incremental costs are low. You might use some additional water and electricity-

andthey'll have to pay someone to clean up your messafterward-

but unless you're Charlie Sheen that shouldn'ttake much.

In other words, your stay there is almost pure profit for the hotel company. The reason:operating leverage.

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

25

A Small Change Can Make a Big Difference

Companies with high operating leverage tend to be capital-intensive businesses with a lot of fixed assets, oroverhead. Fixed expenses like property, plant, and equipment generally won't fluctuate with sales volume.Thus, a modest increase in sales can mean huge growth in profits, as each

additional dollar of revenue fallsalmost straight to the bottom line.

Take XYZ Corp for example. The company sells widgets that require expensive machinery inside ofexpensive plants to manufacture. Their variable costs are relatively low. In Year 1, the company makes $2million in sales and has $200,000 in net income. In Year 2, demand picks up a bit and there is a modest 5%increase in sales. Operating income, however, grows by a whopping 40%.

In contrast, companies with variable cost structures will have low operating leverage. These tend to be labor-intensive businesses or retailers that can adjust the bulk of their expenses as demand changes. Thesebusinesses can weather economic downturns easier by cutting staff or reducing inventory, but when thingsturn around they will have less upside potential.

High Volatility

The profits of high-leverage companies tend to be amplified as demand fluctuates with the business cycle.Hence, their share price will be highly volatile. These companies will experience low or negative profits and afalling share price when times are bad (like in 2008-early 2009), but explosive profit growth and rapidly risingshare prices when things turn around (late 2009-???).

As the global economic recovery gains traction, these

high-leverage businesses are expected to seeexcellent profit growth.

Eaton Corp

(ETN

-

Analyst

Report) is your typical cyclical stock. The company is an industrial conglomerateoperating in capital-intensive areas like electrical components, hydraulics, aerospace, andtrucking/automotive.

In 2009, when the global economy was suffering, the company saw a 23% drop in sales. Due to its highleverage, operating income plunged 65%. Things have been turning around for Eaton, however. For the thirdquarter of 2010, the company saw a healthy 18% increase in sales over the same quarter in 2009 and animpressive 70% increase in operating income.

Analysts have been raising estimates following the strong quarter, sending the stock to a Zacks #1 Rank(Strong Buy). The Zacks Consensus Estimate is calling for 115% EPS growth in 2010 and 26% growth in2011.

The stock tends to fluctuate with the business cycle, as seen in its 5-year chart:

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

26

The stock is up over 50% year-to-date, but valuation looks attractive. Shares trade at 16.6x forward earnings,a discount to the industry average of 18.3x. Its price to book ratio of 2.2 is in-line with its peers. The stock alsooffers a 2.5% dividend yield.

Honda Motor

(HMC

-

Analyst

Report) is another company with high operating leverage. The Japanesecompany is famous for its automobiles, but also manufactures motorcycles, ATVs, generators, and lawnmowers, among other things.

In fiscal year 2009, sales were down 17% while operating income fell 80%. For the second quarter of 2011,sales were up 9% while operating income grew an incredible 149%.

Analysts have revised their estimates much higher for 2011, sending the stock

Shares for Honda have been slightly less volatile over the last 5 years:

The stock is up about 10% year-to-date, and valuation looks very attractive.Shares trade at 11.1x forwardearnings, a discount to the industry average of 16.4x. Its PEG ratio is a mere 0.3.

CSX Corp

(CSX

-

Analyst

Report) also carries a lot of fixed assets and has relatively low variable costs. Thesoutheastern railroad company serves as a bellwether to the overall economy.

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

27

The company was relatively

successful in managing its costs during the downturn in 2009, but shares stillplunged over 65% from May 2008 to their nadir in March 2009. In the third quarter of 2010, CSX reported a16% increase in revenue and a stellar 39% increase in operating income.

Analysts have also been raising their earnings estimates significantly higher for CSX. The Zacks ConsensusEstimate is calling for 40% EPS growth in 2010 and 17% growth in 2011. It is a Zacks #1 Rank (Strong Buy)stock.

Shares of CSX are near their pre-recession levels:

The stock is up over 20% year-to-date, but valuation is quite reasonable. The stock trades at 15.0x forwardearnings, well below the peer group multiple of 19.5x. It has a PEG ratio of 1.3. The stock offers a dividendyield of 1.7%.

Caterpillar

(CAT

-

Analyst

Report) is another company that will tend to struggle during economic contractionand thrive during recovery and expansion. The company makes large earth-moving equipment and recentlyannounced it will be acquiring mining equipment maker Bucryus for $8.6 billion.

In 2009, CAT saw a 37% decrease in revenue and an 88% drop in operating income. Things have begun toturn around though. For the third quarter of 2010, CAT saw a 53% increase in sales and a 329% jump inoperating profit.

Analysts have been raising their estimates significantly higher off the

strong quarter. The Zacks ConsensusEstimate is calling for 83% EPS growth in 2010 and 44% growth in 2011. It is a Zacks #1 Rank (Strong Buy)stock.

Caterpillar's stock has also moved in tandem with the business cycle:

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

28

It has risen more than 40% so far this year, but valuation is still reasonable. Shares trade at 20.4x timesforward earnings, a slight premium to the industry average of 18.3x. Its PEG ratio is 1.5. CAT has a dividendyield of 2.2%.

Proceed with Caution

Keep in mind that if the economic recovery stalls and we slip back into another recession, these companieswill be left with high expenses and little demand for their products. That will spell trouble for their share price.

In other words, leverage is a two-edged sword.

Todd Bunton isthe Growth & Income Stock Strategist for Zacks.com.

Zacks

#1

Rank

Top

Performers

Wesco International (WCC)

By: James Giaquinto

November 17, 2010|Comments: 0

Recommended this article (0)

WCC

WhenWesco International Inc.

(WCC

-

Analyst

Report) announced its third-quarter report in late October,the company was a Zacks #3 Rank ('hold'). But since then, not only has WCC moved to a Zacks #1 Rank('strong buy'), but it also ended Wednesday's ho-hum session as one of the top performers.

But it wasn't the strong third-quarter performance that sparked today's share price gain. Instead, it was theannouncement that WCC would be acquiring TVC Communications.

Shares advanced by approximately 5.8% today, while the Dow lost more than 15 points and the S&P couldonly manage a quarter-point gain. Volume eclipsed 1 million shares, compared to the daily average of a littlemorethan 842,000.

In addition to its enviable Zacks Rank, we also have a longer-term "Outperform" recommendation for WCC.There are several positive factors that we like about the company, including its strong market position, theturnaround in the industrial

and utility markets and its global account model. And let's not forget that itsearnings estimates are moving in the right direction.

Wesco International, whose primary operating entity is Wesco Distribution, is a leading distributor of electricalconstruction products and electrical and industrial maintenance, repair and operating (MRO) supplies, and isthe nation’s largest provider of integrated supply services. Major markets include commercial and industrialfirms, contractors, government agencies, educational institutions, telecommunications businesses andutilities.

S.S. Corporation (Pvt) Ltd.

DHA Phase VI

Karachi, Pakistan

Phone: +92-21-5240131-40

November-19-

2010

29

WCC is the only company from the electrical parts dist industry on today'sZacks

#1

Rank

List.

Buying TVC Communications

The

value of the deal is approximately $246.5 million. TVC Communications is a leading distributor ofbroadband communications infrastructure products serving the cable, telecommunications and satelliteindustries.

According to Wesco, TVC strengthens its data communications platform while also expanding into previouslyuntapped international growth markets. The acquisition is expected to be immediately accretive, and shouldboost Wesco's 2011 diluted earnings per share by approximately $0.30 or more.

The deal should close before the end of the year.

Earnings Estimates for Wesco International

While the acquisition helped WCC become a top performer on Wednesday, it is not the reason why thecompany has the best Zacks Rank possible. The catalyst of that stems from a strong third quarter report inlate October.

Earnings per share came in at 74 cents in the quarter, which surpassed the year-ago result of 63 cents,excluding items. The result also beat the Zacks Consensus Estimate of 65 cents by nearly 14%. This markedthe fourth straight quarter with a positive earnings surprise.

In the wake of this strong quarterly report, all 17 estimates for this year were revised higher. The ZacksConsensus Estimate of $2.49 per share is up 6.9% in the past30 days from $2.33.

Meanwhile, analysts expect next year’s profit of $3.18 per share to grow by nearly 28% from this year. TheZacks Consensus Estimate is up 4.6% in 30 days on 17 upward revisions out of 19 total estimates.